Home Equity worksheet

1. Maximum you could borrow: $190,000.00

1. Equity: the home's value minus what you owe on it

   $\mathrm{\$450,000.00}-\mathrm{\$260,000.00}$$=\mathrm{\$190,000.00}$

2. Current loan-to-value: what you owe as a share of the value

   $\frac{\mathrm{\$260,000.00}}{\mathrm{\$450,000.00}}$$=\mathrm{57.78\%}$

3. The lender caps all loans on the home at 100% of its value. Subtract what you already owe to see how much room is left

   $\mathrm{\$450,000.00}\times \mathrm{100\%}-\mathrm{\$260,000.00}$$=\mathrm{\$190,000.00}$

4. Check the combined loan-to-value after borrowing: everything you'd owe as a share of the value

   $\frac{\mathrm{\$260,000.00}+\mathrm{\$38,000.00}}{\mathrm{\$450,000.00}}$$=\mathrm{66.22\%}$

5. While you can draw on the line, you pay only one month's interest: the balance × the yearly rate ÷ 12

   $\mathrm{\$38,000.00}\times \frac{\mathrm{7.5\%}}{12}$$=\mathrm{\$237.50}$

6. When the draw period ends, the whole balance is paid off in 216 equal monthly payments, with interest

   $\frac{\mathrm{\$38,000.00}\times 0.00625}{1-{\left(1+0.00625\right)}^{\mathrm{-216}}}$$=\mathrm{\$321.09}$

7. Add the interest-only payments from the draw period to the interest paid during repayment

   $\mathrm{\$237.50}\times 84+\mathrm{\$321.09}\times 216-\mathrm{\$38,000.00}$$=\mathrm{\$51,305.41}$

2. Maximum you could borrow: $369,000.00

1. Equity: the home's value minus what you owe on it

   $\mathrm{\$660,000.00}-\mathrm{\$225,000.00}$$=\mathrm{\$435,000.00}$

2. Current loan-to-value: what you owe as a share of the value

   $\frac{\mathrm{\$225,000.00}}{\mathrm{\$660,000.00}}$$=\mathrm{34.09\%}$

3. The lender caps all loans on the home at 90% of its value. Subtract what you already owe to see how much room is left

   $\mathrm{\$660,000.00}\times \mathrm{90\%}-\mathrm{\$225,000.00}$$=\mathrm{\$369,000.00}$

4. Check the combined loan-to-value after borrowing: everything you'd owe as a share of the value

   $\frac{\mathrm{\$225,000.00}+\mathrm{\$36,000.00}}{\mathrm{\$660,000.00}}$$=\mathrm{39.55\%}$

5. While you can draw on the line, you pay only one month's interest: the balance × the yearly rate ÷ 12

   $\mathrm{\$36,000.00}\times \frac{\mathrm{8\%}}{12}$$=\mathrm{\$240.00}$

6. When the draw period ends, the whole balance is paid off in 240 equal monthly payments, with interest

   $\frac{\mathrm{\$36,000.00}\times 0.00666667}{1-{\left(1+0.00666667\right)}^{\mathrm{-240}}}$$=\mathrm{\$301.12}$

7. Add the interest-only payments from the draw period to the interest paid during repayment

   $\mathrm{\$240.00}\times 132+\mathrm{\$301.12}\times 240-\mathrm{\$36,000.00}$$=\mathrm{\$67,948.42}$

3. Maximum you could borrow: $208,000.00

1. Equity: the home's value minus what you owe on it

   $\mathrm{\$460,000.00}-\mathrm{\$160,000.00}$$=\mathrm{\$300,000.00}$

2. Current loan-to-value: what you owe as a share of the value

   $\frac{\mathrm{\$160,000.00}}{\mathrm{\$460,000.00}}$$=\mathrm{34.78\%}$

3. The lender caps all loans on the home at 80% of its value. Subtract what you already owe to see how much room is left

   $\mathrm{\$460,000.00}\times \mathrm{80\%}-\mathrm{\$160,000.00}$$=\mathrm{\$208,000.00}$

4. Check the combined loan-to-value after borrowing: everything you'd owe as a share of the value

   $\frac{\mathrm{\$160,000.00}+\mathrm{\$45,000.00}}{\mathrm{\$460,000.00}}$$=\mathrm{44.57\%}$

5. Find the monthly payment. A standard formula gives the one amount that pays off $45,000.00 in 60 equal months, at the monthly rate i (the yearly rate ÷ 12)

   $\frac{\mathrm{\$45,000.00}\times 0.00770833}{1-{\left(1+0.00770833\right)}^{\mathrm{-60}}}$$=\mathrm{\$939.60}$

6. Total interest: all the payments minus the amount borrowed

   $\mathrm{\$939.60}\times 60-\mathrm{\$45,000.00}$$=\mathrm{\$11,375.73}$

4. Maximum you could borrow: $140,000.00

1. Equity: the home's value minus what you owe on it

   $\mathrm{\$360,000.00}-\mathrm{\$220,000.00}$$=\mathrm{\$140,000.00}$

2. Current loan-to-value: what you owe as a share of the value

   $\frac{\mathrm{\$220,000.00}}{\mathrm{\$360,000.00}}$$=\mathrm{61.11\%}$

3. The lender caps all loans on the home at 100% of its value. Subtract what you already owe to see how much room is left

   $\mathrm{\$360,000.00}\times \mathrm{100\%}-\mathrm{\$220,000.00}$$=\mathrm{\$140,000.00}$

4. Check the combined loan-to-value after borrowing: everything you'd owe as a share of the value

   $\frac{\mathrm{\$220,000.00}+\mathrm{\$45,000.00}}{\mathrm{\$360,000.00}}$$=\mathrm{73.61\%}$

5. Find the monthly payment. A standard formula gives the one amount that pays off $45,000.00 in 180 equal months, at the monthly rate i (the yearly rate ÷ 12)

   $\frac{\mathrm{\$45,000.00}\times 0.00583333}{1-{\left(1+0.00583333\right)}^{\mathrm{-180}}}$$=\mathrm{\$404.47}$

6. Total interest: all the payments minus the amount borrowed

   $\mathrm{\$404.47}\times 180-\mathrm{\$45,000.00}$$=\mathrm{\$27,805.09}$

5. Maximum you could borrow: $215,000.00

1. Equity: the home's value minus what you owe on it

   $\mathrm{\$450,000.00}-\mathrm{\$235,000.00}$$=\mathrm{\$215,000.00}$

2. Current loan-to-value: what you owe as a share of the value

   $\frac{\mathrm{\$235,000.00}}{\mathrm{\$450,000.00}}$$=\mathrm{52.22\%}$

3. The lender caps all loans on the home at 100% of its value. Subtract what you already owe to see how much room is left

   $\mathrm{\$450,000.00}\times \mathrm{100\%}-\mathrm{\$235,000.00}$$=\mathrm{\$215,000.00}$

4. Check the combined loan-to-value after borrowing: everything you'd owe as a share of the value

   $\frac{\mathrm{\$235,000.00}+\mathrm{\$42,000.00}}{\mathrm{\$450,000.00}}$$=\mathrm{61.56\%}$

5. Find the monthly payment. A standard formula gives the one amount that pays off $42,000.00 in 180 equal months, at the monthly rate i (the yearly rate ÷ 12)

   $\frac{\mathrm{\$42,000.00}\times 0.00708333}{1-{\left(1+0.00708333\right)}^{\mathrm{-180}}}$$=\mathrm{\$413.59}$

6. Total interest: all the payments minus the amount borrowed

   $\mathrm{\$413.59}\times 180-\mathrm{\$42,000.00}$$=\mathrm{\$32,446.31}$

6. Maximum you could borrow: $280,000.00

1. Equity: the home's value minus what you owe on it

   $\mathrm{\$440,000.00}-\mathrm{\$160,000.00}$$=\mathrm{\$280,000.00}$

2. Current loan-to-value: what you owe as a share of the value

   $\frac{\mathrm{\$160,000.00}}{\mathrm{\$440,000.00}}$$=\mathrm{36.36\%}$

3. The lender caps all loans on the home at 100% of its value. Subtract what you already owe to see how much room is left

   $\mathrm{\$440,000.00}\times \mathrm{100\%}-\mathrm{\$160,000.00}$$=\mathrm{\$280,000.00}$

4. Check the combined loan-to-value after borrowing: everything you'd owe as a share of the value

   $\frac{\mathrm{\$160,000.00}+\mathrm{\$50,000.00}}{\mathrm{\$440,000.00}}$$=\mathrm{47.73\%}$

5. Find the monthly payment. A standard formula gives the one amount that pays off $50,000.00 in 120 equal months, at the monthly rate i (the yearly rate ÷ 12)

   $\frac{\mathrm{\$50,000.00}\times 0.00458333}{1-{\left(1+0.00458333\right)}^{\mathrm{-120}}}$$=\mathrm{\$542.63}$

6. Total interest: all the payments minus the amount borrowed

   $\mathrm{\$542.63}\times 120-\mathrm{\$50,000.00}$$=\mathrm{\$15,115.77}$

7. Maximum you could borrow: $260,000.00

1. Equity: the home's value minus what you owe on it

   $\mathrm{\$500,000.00}-\mathrm{\$240,000.00}$$=\mathrm{\$260,000.00}$

2. Current loan-to-value: what you owe as a share of the value

   $\frac{\mathrm{\$240,000.00}}{\mathrm{\$500,000.00}}$$=\mathrm{48\%}$

3. The lender caps all loans on the home at 100% of its value. Subtract what you already owe to see how much room is left

   $\mathrm{\$500,000.00}\times \mathrm{100\%}-\mathrm{\$240,000.00}$$=\mathrm{\$260,000.00}$

4. Check the combined loan-to-value after borrowing: everything you'd owe as a share of the value

   $\frac{\mathrm{\$240,000.00}+\mathrm{\$41,000.00}}{\mathrm{\$500,000.00}}$$=\mathrm{56.2\%}$

5. Find the monthly payment. A standard formula gives the one amount that pays off $41,000.00 in 240 equal months, at the monthly rate i (the yearly rate ÷ 12)

   $\frac{\mathrm{\$41,000.00}\times 0.00833333}{1-{\left(1+0.00833333\right)}^{\mathrm{-240}}}$$=\mathrm{\$395.66}$

6. Total interest: all the payments minus the amount borrowed

   $\mathrm{\$395.66}\times 240-\mathrm{\$41,000.00}$$=\mathrm{\$53,958.13}$

8. Maximum you could borrow: $93,000.00

1. Equity: the home's value minus what you owe on it

   $\mathrm{\$460,000.00}-\mathrm{\$275,000.00}$$=\mathrm{\$185,000.00}$

2. Current loan-to-value: what you owe as a share of the value

   $\frac{\mathrm{\$275,000.00}}{\mathrm{\$460,000.00}}$$=\mathrm{59.78\%}$

3. The lender caps all loans on the home at 80% of its value. Subtract what you already owe to see how much room is left

   $\mathrm{\$460,000.00}\times \mathrm{80\%}-\mathrm{\$275,000.00}$$=\mathrm{\$93,000.00}$

4. Check the combined loan-to-value after borrowing: everything you'd owe as a share of the value

   $\frac{\mathrm{\$275,000.00}+\mathrm{\$45,000.00}}{\mathrm{\$460,000.00}}$$=\mathrm{69.57\%}$

5. While you can draw on the line, you pay only one month's interest: the balance × the yearly rate ÷ 12

   $\mathrm{\$45,000.00}\times \frac{\mathrm{9.5\%}}{12}$$=\mathrm{\$356.25}$

6. When the draw period ends, the whole balance is paid off in 264 equal monthly payments, with interest

   $\frac{\mathrm{\$45,000.00}\times 0.00791667}{1-{\left(1+0.00791667\right)}^{\mathrm{-264}}}$$=\mathrm{\$407.01}$

7. Add the interest-only payments from the draw period to the interest paid during repayment

   $\mathrm{\$356.25}\times 84+\mathrm{\$407.01}\times 264-\mathrm{\$45,000.00}$$=\mathrm{\$92,375.01}$

9. Maximum you could borrow: $200,000.00

1. Equity: the home's value minus what you owe on it

   $\mathrm{\$425,000.00}-\mathrm{\$225,000.00}$$=\mathrm{\$200,000.00}$

2. Current loan-to-value: what you owe as a share of the value

   $\frac{\mathrm{\$225,000.00}}{\mathrm{\$425,000.00}}$$=\mathrm{52.94\%}$

3. The lender caps all loans on the home at 100% of its value. Subtract what you already owe to see how much room is left

   $\mathrm{\$425,000.00}\times \mathrm{100\%}-\mathrm{\$225,000.00}$$=\mathrm{\$200,000.00}$

4. Check the combined loan-to-value after borrowing: everything you'd owe as a share of the value

   $\frac{\mathrm{\$225,000.00}+\mathrm{\$39,000.00}}{\mathrm{\$425,000.00}}$$=\mathrm{62.12\%}$

5. Find the monthly payment. A standard formula gives the one amount that pays off $39,000.00 in 120 equal months, at the monthly rate i (the yearly rate ÷ 12)

   $\frac{\mathrm{\$39,000.00}\times 0.00708333}{1-{\left(1+0.00708333\right)}^{\mathrm{-120}}}$$=\mathrm{\$483.54}$

6. Total interest: all the payments minus the amount borrowed

   $\mathrm{\$483.54}\times 120-\mathrm{\$39,000.00}$$=\mathrm{\$19,025.30}$

10. Maximum you could borrow: $170,000.00

1. Equity: the home's value minus what you owe on it

   $\mathrm{\$500,000.00}-\mathrm{\$280,000.00}$$=\mathrm{\$220,000.00}$

2. Current loan-to-value: what you owe as a share of the value

   $\frac{\mathrm{\$280,000.00}}{\mathrm{\$500,000.00}}$$=\mathrm{56\%}$

3. The lender caps all loans on the home at 90% of its value. Subtract what you already owe to see how much room is left

   $\mathrm{\$500,000.00}\times \mathrm{90\%}-\mathrm{\$280,000.00}$$=\mathrm{\$170,000.00}$

4. Check the combined loan-to-value after borrowing: everything you'd owe as a share of the value

   $\frac{\mathrm{\$280,000.00}+\mathrm{\$60,000.00}}{\mathrm{\$500,000.00}}$$=\mathrm{68\%}$

5. While you can draw on the line, you pay only one month's interest: the balance × the yearly rate ÷ 12

   $\mathrm{\$60,000.00}\times \frac{\mathrm{7.25\%}}{12}$$=\mathrm{\$362.50}$

6. When the draw period ends, the whole balance is paid off in 264 equal monthly payments, with interest

   $\frac{\mathrm{\$60,000.00}\times 0.00604167}{1-{\left(1+0.00604167\right)}^{\mathrm{-264}}}$$=\mathrm{\$455.34}$

7. Add the interest-only payments from the draw period to the interest paid during repayment

   $\mathrm{\$362.50}\times 120+\mathrm{\$455.34}\times 264-\mathrm{\$60,000.00}$$=\mathrm{\$103,708.70}$